EDF Says 2012 Growth On Track As Weather, Price Hikes Boost Sales

05/10/2012| 12:12pm US/Eastern

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By Geraldine Amiel

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French state-controlled power group Electricite de France SA (>> EDF) Thursday confirmed its financial objectives for 2012 as it reported a 6.3% growth in revenue for the first quarter, boosted by favorable weather and tariff increases in France and the U.K.

"First quarter growth in our sales is due to a solid performance by the nuclear fleet in France, on which basis we are confirming our 2012 output target of between 420 and 425 TWh," EDF's Chairman and Chief Executive Henri Proglio said in a statement.

EDF expects its net profit from continuing operations for 2012 to be between EUR3.7 billion and EUR3.9 billion and plans to pay a dividend at least stable compared with last year.

The group also reiterated its medium-term financial objectives and didn't comment about the outcome of the French presidential election in which socialist Francois Hollande was elected. Hollande has pledged to close France's oldest nuclear plant in Fessenheim, in the east, during his five-year mandate and to reduce the share of nuclear power in France's energy mix to 50% from the current level of nearly 80%.

EDF said revenue for the first three months of 2012 rose to EUR20.84 billion, from EUR19.6 billion in the same period a year earlier. This beat an average expectation of EUR20.49 billion, according to a Dow Jones Newswires poll of six analysts.

The company doesn't provide figures for earnings before interest, tax, depreciation and amortization, or Ebitda, on a quarterly basis.

Over the last six months, shares in EDF have shed around 20% as investors priced in higher costs for additional nuclear safety and security schemes as well as for expanding its nuclear activities in the U.K. Shares closed Wednesday at EUR16.39.

-By Geraldine Amiel, Dow Jones Newswires; +33 1 40171767; geraldine.amiel@dowjones.com

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